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Sensex, Nifty Set To Follow Global Peers Higher

Indian shares look set to open higher on Wednesday, tracking firm cues from global markets on optimism about U.S.-China trade discussions.

Investors may also react positively to media reports suggesting that the RBI is likely to transfer an interim dividend of Rs 30,000-40,000 crore ($4.32 billion-$5.8 billion) to the government by March, a development that could help the government bridge a widening budget deficit following a drop in tax collections.

Benchmark indexes Sensex and the Nifty finished higher for the third straight session on Tuesday, while the rupee tumbled by 53 paise to close at 70.21 against the dollar on concerns over widening of current account deficit in view of persistent rise in crude oil prices.

Asian stocks remain broadly higher on optimism that a positive outcome from the discussions between U.S. and Chinese officials would help the two nations strike a long-term trade deal and result in economic revival in China.

Benchmark indexes in China, Hong Kong, Japan and South Korea are up 1-2 percent.

Gold prices fell on improved risk appetite and the dollar edged lower while crude climbed above US$50 a barrel for the first time this year on reports about output reductions by oil producers.

Crude oil futures for February ended up $1.26 or 2.6 percent at $49.78 a barrel on Tuesday, adding to the 1.2 percent gain in the previous session.

U.S. stocks rose for a third straight session on Tuesday, marking the longest winning streak for major indexes since late November, after Washington and Beijing extended their trade negotiations for a third day.

The Dow and the tech-heavy Nasdaq Composite surged around 1.1 percent, while the S&P 500 added 1 percent.

European stocks hit a three-week high on Tuesday after U.S. President Donald Trump tweeted, "talks with China are going very well!"

The pan-European Stoxx Europe 600 index gained 0.9 percent. The German DAX rose half a percent, France's CAC 40 index rallied 1.2 percent and the U.K.'s FTSE 100 advanced 0.7 percent.

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